Maitland Private Equity Monitor – 11 May 2018

Worth a read

The popularity of traditional private equity funds is fading as investors look for collaborative models that allow a more hands-on role. CalSTRS has renewed its support for options with lower fees that grant it more direct control, highlighting its focus on innovative platforms that give it more social capital. Private Equity News, 10 May 2018

Standard Chartered is seeking investors to buy its remaining $1.5bn of private equity assets to end its three-year exit efforts. The bank is looking for suitors to set the business up as an independent entity, with the possibility that the current management will buy the assets alongside other companies. Bloomberg, 10 May 2018

The UK’s latest crackdown on money laundering will shed light on the murky identity of investors in offshore private-equity funds. Although this may not significantly affect the industry, greater controls on Scottish limited partnerships could jeopardise the UK’s competitiveness as a time when firms are already uncertain over Brexit. Private Equity News, 8 May 2018

US companies with junk credit ratings are receiving loans from private equity firms at crisis-era levels. Cheerleaders say these funds can absorb the risks without endangering the financial system, but naysayers have warned that the quality of loans is deteriorating, and private credit funds lack the infrastructure to cope with an economic downturn. Financial Times, 7 May 2018

Wall of money

GLP, an investor in logistics real estate, has raised $1.6bn for a debut fund in private equity through its newly created Hidden Hill Capital. The company told Private Equity International that the decision was made after seeing increased demand from institutional investors for advice and co-investment. Private Equity International, 9 May 2018

EQT has closed its latest Asian private equity fund on $800m after more than a year in the market. The fund will back mid-market companies based in China and Southeast Asia across a number of sectors including healthcare, consumer and TMT. Private Equity News, 9 May 2018

Specialist healthcare investor G Square Capital Private Equity is said to be planning a return to the market to raise its third fund, which could raise as much as €450m. The firm closed its second fund at its €350m hard cap. Private Equity News, 8 May 2018

A group of senior executives from placement agent MVision Private Equity have launched Meteor5 Capital Advisers, an investment firm to back first-time private equity funds with offices in New York and Madrid. Link